Immigration Minister Damian Green said London Metropolitan University, which has had been stripped of the right to allow in overseas students, had been "very very seriously deficient as a sponsor".
The Conservative MP said it "did not know if students were turning up or not" and explained the government had given genuine students 60 days to find a new course.
He said: "I am not chucking anyone out.. I am enforcing the rules."
The university has been banned from teaching and recruiting overseas students, leaving more than 2,000 undergraduates potentially facing deportation.
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